If you’ve been debating whether to have a deposit required for an appointment, the short answer is that it really depends on your situation.
For some service businesses, charging deposits is a no-brainer, while for others, it can feel too heavy-handed and turn off potential new clients.
In this article, we’ll walk through the pros and cons as well as how to figure out what makes sense for your business.
What Exactly Is a Deposit & Why Is It Important?
When you say a deposit (or deposit fee) is required for an appointment, you’re asking the client to pay a portion of the service cost upfront to secure their spot.
That money usually goes toward their final total — unless they cancel too late or don’t show up, in which case it’s partly or fully nonrefundable.
Also, just to be clear, a deposit is completely different from these other terms:
Full prepayment: The client pays 100% of the service cost upfront in advance, rather than paying on their appointment.
Card on file: The client books without paying, but you store their card details and charge a fee in case of a no-show or late cancellation.
In a nutshell, a deposit is a subtle way to tell clients: “My time is valuable. If you want me to block this time out for you, I need a small commitment upfront.”
Among the benefits of charging a deposit is that it protects your and your staff’s time by making sure the people booking an appointment will actually show up.
It also helps in covering prep and product costs and stabilizing your cash flow because you won’t be taking a total loss in case a client cancels last minute or completely bails.
Pros & Cons of Having a Deposit Required for Appointments
Now, let’s take a look at the most common advantages and disadvantages of adding a deposit to your booking process.
Pros:
Fewer no-shows and last-minute cancellations: Once clients know a deposit is required for booking an appointment, they’re less likely to ghost you. And even if they do, you’re still compensated for holding that spot.
More reliable clients who won’t waste your time: Deposits tend to filter out tentative, non-committal bookings, chronic reschedulers, and people who were never really sure in the first place.
Clear expectations instead of awkward money talk: Because clients agree to the deposit and policies when they book, they know exactly what to expect and you can avoid uncomfortable payment conversations later.
More predictable income: Requiring a deposit on longer or higher-priced services help smooth out your revenue, so a last-minute cancellation doesn’t mean you lose everything you were counting on.
Cons:
Potential pushback from clients: This is especially like if they’re regulars who have been used to walking in, booking casually, or paying only on the day of. Some clients may be caught off guard or think deposits are an inconvenience.
Risk of confusion or disputes: If your deposit policy isn’t clearly written and visible everywhere, clients might claim they didn’t know, or argue when they lose a deposit.
Possible barrier for first-timers: If someone’s never booked an appointment with you before, paying a deposit upfront can feel like a big ask and might push them to choose one of your competitors instead.
Local rules and legal considerations: Depending on where you live, there may be legal rules about what you can and can’t do with deposits and refunds. This can make it trickier to set a strict “no refunds, no exceptions” policy.
Also read: How To Handle Difficult Clients & Avoid Negative Reviews
When It Makes Sense To Charge a Deposit Fee
Below is a quick yes-or-no checklist to help you figure out whether to require deposits for appointments. Make sure to answer each question honestly!
Do no-shows or last-minute cancellations stress you out at least once a week?
Do they regularly happen on appointments that are more than one hour long?
Are you often turning people away because you’re “fully booked,” only to have someone ghost you?
Do you have to buy products (like color, needles, lashes, or other disposables) or do custom prep work before a client arrives?
Would losing one or two high-value appointments in a week seriously impact your income?
Do you or your staff have limited spots available each week and/or a growing waitlist?
If you answered yes to two or more, we highly recommend that you consider implementing a deposit policy — even if only for your most time-intensive services.
Also read: What To Say to No-Show Clients (Including Message Templates!)
When You Can Probably Skip Deposits
Conversely, you might not really need to ask clients for a deposit (at least maybe for now). Here are the three most common situations when it isn’t necessary for a service business.
Your menu is mostly short, straightforward services that don’t cost much, like bang trims or basic touch-ups.
You’re relatively new in your field and still building your client base and reputation. So, you want to make it as easy as possible for people to book with you.
You have a solid group of regular clients who always show up on time and rarely ever cancel.
When You Want a Middle-Ground Option
Yes, there’s also a third option. Instead of making an all-or-nothing decision, you can use deposit fees more selectively. Below are some ways you can go about it.
Requiring a deposit only for new clients: This lets you protect your time from people you haven’t met yet, while still keeping things easy and flexible for the regulars who have already proven their reliability.
Starting without deposits, then adding them later once you have more bookings: You can begin deposit-free while you’re still building your client base, then introduce a deposit policy as your schedule gets busier.
Only requiring a deposit for appointment types that are long, complicated, or expensive: Think complex hair treatments, full-day tattoo sessions, spa packages, or private training — anything that takes a lot of time or prep and where no-shows are especially costly.
Extra tip: Use a pro scheduler like Bookedin that lets you turn deposits on or off per service. You can also keep it as optional on certain bookings if you want a more flexible policy.
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Deciding How Your Deposit Policy Will Work
Once you’ve decided you are going to charge a deposit (whether for every appointment or not), the next step is figuring out how to structure your deposit policy.
For that, there are two main parts you need to sort out:
How the deposit will be calculated (a flat fee or a percentage of the total price)
What happens to the deposit in case of a late cancellation or no-show (refunded, transferred, or forfeited)
Next, let’s walk through what each of these actually looks like in practice.
Flat Fee vs. Percentage
With a flat fee deposit, you set one fixed amount each time for a given service. For example, a $50 deposit for tattoo appointments, $30 for color services, or $25 for spa packages.
This type of deposit works well when your pricing is fairly consistent because flat fees are simple to explain and easy for clients to remember.
Meanwhile, with a percentage-based deposit, you take a slice of the total service price, usually somewhere between 25% and 50%. For instance, 30% on a $300 color (so a $90 deposit) or 50% on a $600 day session tattoo ($300 deposit).
Because a percentage-based deposit scales with the total cost, clients booking more expensive services pay a larger deposit, which tends to feel fairer when your prices or appointment lengths vary.
Note: Want to put these into practice? Choose between Bookedin’s Pro and Plus plans, so you can collect deposits from clients automatically when they book.
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Refundable, Nonrefundable, and Everything In Between
When a deposit is required for an appointment, you also need to decide what happens to it in case the client suddenly can’t make it.
Refundable deposits are ideal if you want some security without being too strict. To keep things fair, only refund a deposit if the client cancels within the notice window (e.g., 24–48 hours before) or if you’re the one who has to cancel.
Nonrefundable deposits are common for tattoos, high-maintenance hair color, or fully custom services where you’ve already invested extra time and prep work. So, if the client cancels late or goes MIA, you keep the deposit to cover that loss.
With transferable deposits, the client doesn’t get their money back, but if they reschedule within your allowed notice window, the deposit is simply moved to that new date.
Partially refundable deposits sit in the middle: If the client cancels, you refund a portion and keep the rest to cover the time and costs you’ve already put in.
Whatever you choose, the most important thing is that it’s crystal clear, written down, and shared everywhere clients book with you—no surprises.
Note: If you’re using Bookedin, you can handle refunds directly in the system, whether you’re issuing them automatically based on your policy or manually on a case-by-case basis.
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Conclusion
So, back to the original question: Should you require a deposit for appointments? There’s no one-size-fits-all answer, but with many service businesses, there’ll likely be times when having a deposit policy will make your life a lot easier.
The key is to look at your actual no-show rate, your prices, and how your schedule feels right now. For some businesses, the pros massively outweigh any cons. For others, deposits might only be needed for a few specific services (or perhaps not right now).
Also, keep in mind that you don’t have to change everything overnight. You can start small with just requiring a deposit for longer, more expensive, or most-often-ghosted services, then adjust as you see how clients respond.
